Time running out for 3-way NAFTA deal
Story Date: 9/20/2018

 

Source: POLITICO'S MORNING AGRICULTURE, 9/19/18

With a self-imposed deadline looming, U.S. and Canadian officials are feeling the pressure to strike a trade deal — just as GOP lawmakers are hinting they're open to a bilateral U.S.-Mexico pact that leaves Canada out in the cold. House Majority Whip Steve Scalise said "there is a growing frustration with many in Congress regarding Canada's negotiating tactics," in a statement first reported by POLITICO Playbook PM.

"Members are concerned that Canada does not seem to be ready or willing to make the concessions that are necessary for a fair and high-standard agreement," Scalise (R-La.) said. "While we would all like to see Canada remain part of this three-country coalition, there is not an unlimited amount of time for it to be part of this new agreement."

The warning shot came just before Canadian Foreign Minister Chrystia Freeland returned to Washington on Tuesday night to resume high-level talks with U.S. trade officials today, aiming to cut a deal that would add Canada into the preliminary U.S.-Mexico framework.

The timing is tight: The Trump administration notified Congress on Aug. 31 of its intent to sign a deal with Mexico — and possibly with Canada — to allow trade promotion law processes to be satisfied and still enable Mexican President Enrique Peña Nieto to sign the agreement before his last day in office on Nov. 30. Under the law, Trump must submit draft text to Congress 30 days after the notification — or Sept. 30 — and he cannot sign the deal until at least 60 days after that. And Mexican Economy Secretary Ildefonso Guajardo has said at least 10 days will be needed to finish the draft text, so Sept. 20 appears to be a target date for a deal with Canada, if not a deadline.

If there's no deal by then: Trump has said he's happy to move ahead with the bilateral U.S.-Mexico agreement reached in August.

But many lawmakers and business groups have pushed back, arguing Canada needs to be included in any new trade pact that replaces NAFTA. Those groups include heavyweights like the U.S. Chamber of Commerce, the National Association of Manufacturers and the Business Roundtable, as Pro Trade's Doug Palmer writes.

On the other hand, Scalise's statement Tuesday suggests there could be more support than anticipated — at least among House Republicans — for a two-way deal.

























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